The foreign ministers of European Union member states were unable to reach a consensus yesterday over two regulations proposed by the European Commission to reward the Turkish Cypriots for their support of a U.N. reunification plan last year.

The General Affairs and External Relations Council (GAERC), which brings together the foreign ministers of the EU member states on a monthly basis, decided to discuss the issue at a December meeting, British Foreign Secretary Jack straw briefly said following the meeting.

The two regulations concern (i) allowing financial aid for and (ii) direct trade with Turkish Cypriots, yet their approval has been blocked by the Greek Cypriots for several months. With Greek Cyprus, a full member of the EU since May 2004, blocking trade proposals, the EU seems to have separated the aid and trade proposals and focused on the release of the aid in the face of a budgetary deadline.

The Greek Cypriot veto may cause the Turkish Cypriots to lose nearly half of a 259 million euro package of financial assistance the EU Commission proposed in July. Under EU budgetary arrangements the proposed aid package needs to receive the council's approval before the end of 2005.

The EU diplomats have now moved towards a decoupling of the aid package from the direct trade plan, enabling the aid to be released separately, Internet news site EUobserver reported yesterday.

Straw said the decoupling was “under active consideration” by member states and that he hoped an “interim conclusion” could be achieved at the next foreign ministers' gathering in December, EUobserver said.

Dutch Foreign Minister Bernard Bot said that just giving aid was “better than nothing,” adding that “the [Greek] Cypriots will never say ‘yes' to both,” according to the news site.

I hope those that thought that Papadopoulos could bent in pressure now realize that we have some red lines that we will never cross. So I hope next time they will not waste so much time trying to force us to accept things that are unfair and against the law.

EUOBSERVER / BRUSSELS - If member states do not reach a deal on releasing a €259 million EU aid package for Northern Cyprus before the end of the year, half of the cash will be lost - but Turkish Cypriots have threatened to decline the aid altogether.

Diplomats indicated that the UK presidency will present a proposal to member states' ambassadors on Thursday (8 December) to release the financial assistance package to the poor Turkish-populated north of the island, proposed by the European Commission in July 2004.

The money has been stuck in Brussels' coffers ever since, because the (Greek Cypriot) Republic of Cyprus, an EU member state since May 2004, has blocked the release of the funds.

Cyprus objects to the coupling of the aid to a commission-proposed "direct trade" scheme between the Turkish Cypriots and the EU, which Cypriot diplomats say would mean a de facto recognition of the Turkish occupation of the North.

But if member states do not agree to release the cash before the end of this year, half of the €259 million sum will be lost for fiscal reasons, with 2006 being a new budgetary year.

The UK presidency will now propose member states de-couple the aid package from the direct trade plan, enabling the cash to be released separately, with several sources indicating the matter was "urgent".

Direct trade off the table?
At Thursday's ambassadors meeting, the European Commission will present a declaration in which it will back the de-coupling, a European diplomat said.

But the content of the commission declaration will be highly sensitive, as Brussels will also express its view over the future of the trade package, which Turkish Cypriots and analysts say is economically much more important.

The diplomat said Nicosia has, in direct talks with the commission, been pushing for concrete reassurances that the direct trade scheme is now off the agenda.

But a commission source said that in the commission's view "the trade regulation remains on the table."

Turkish Cypriots may reject the deal
Moreover, the president of the Turkish Cypriot Chamber of Commerce Erdil Nami told EUobserver after meeting commission officials that there is a "big possibility" that Turkish Cypriots will say "no" to the money altogether, if it means giving up on direct trade.

Mr Nami, who was to meet with the British and French ambassadors later today, said the €259 million EU aid package was important primarily in terms of "the direct contacts with EU authorities that this will bring", but economically less so.

He added that by contrast, direct trade would boost Turkish Cypriot exports as it entailed preferential tariffs for products to be exported to EU countries.

"We are EU citizens and part of the European Union", said Mr Nami, reminding EU countries of their obligations to end the isolation of the Turkish Cypriots.

The north of the island has been under international trade embargo since Turkish forces occupied the territory in 1974, after a coup d'etat on the island by Greek army officers.

THE PERMANENT Representatives (COREPER) to the EU are expected to discuss today the possibility of decoupling the trade and aid package for the Turkish Cypriots (259 euros and direct trade), so that no money is lost.

However, until late yesterday there was conflicting information as to
whether or not agreement could be reached. It was not clear if decoupling was accepted by the Turkish Cypriots and Ankara, or what stance the British EU Presidency would hold.

According to one source, the issue was discussed and agreed behind closed doors by the Commission and the Greek Cypriot side. The Commission then sought the agreement of the Turkish Cypriots.

It appears it was agreed the Commission would issue a ‘declaration’
welcoming the adoption of the regulation giving 259 million euros to the Turkish Cypriots, but dropping the direct trade regulation. The text circulating yesterday in Brussels, ties the trade regulation to the opening of the Famagusta port, the status of Varosha and the protection of property in the north.

These are clearly positions of the Greek Cypriot side, that until now the Turkish Cypriots and Ankara have been rejecting, aiming for the higher political stakes of direct trade.

According to the Commission declaration, published on the site of a Turkish Brussels-based agency, it “underlines work should continue on the follow-up of the Council Conclusions of 26 April 2004 with the aim of facilitating the reunification of the island by economic integration and improving contact between the two communities and with the EU.

“In this respect, the Commission considers that the way forward requires the further improvement of the Green Line regulations as well as a common understanding of all the parties concerned on the status of the Famagusta port in conjunction with the status of Varosha, and the protection of property rights of natural and legal persons in ccordance with the case law of the ECHR.”

The declaration, which appears to have infuriated Turkish circles in
Brussels, also calls for respect to a protocol included in Cyprus’ accession treaty, by which only the Republic is recognised and says the implementation of EU rules and regulations are temporarily suspended in the north.

If decoupling is rejected today, then half of the money will be lost, even though diplomats in Brussels have been saying that another “budget line” could be found if agreement is ever reached.

This is not the first time the decoupling of the two regulations is discussed. It was rejected again a few months ago, by the Turkish Cypriots.

On their part, the Greek Cypriots have agreed to the 250 million euros but are not budging on their position that they will not concede to direct trade, considering it as de facto recognition.

Under the pressure of the Turkish Cypriots losing money and criticism that it has not kept its promise, it appears the Commission is giving one more go to clinching a deal.

According to sources, the Commission not only wants the money to be
released, but wants to get the two sides back to the table to discuss issues such as the opening of the Famagusta port. It appears it wants to hold discussions similar to the “secret talks”, as they were dubbed, held under the Luxembourg presidency.

The UK presidency’s role in the latest discussion is also unclear clear. It had been stating that no discussions were going on and neither was a proposal going to come before COREPER, but one source said it participated in the discussions the Commission had with the Turkish Cypriots. In either case, it is well known in EU circles that the British always have the lead in anything to do with Cyprus.

If the Turkish Cypriots reject the proposal, according to a source, then either it will not be tabled or the British will get other countries to turn it down, thus maintaining their “objectivity” as the Presidency.

Turk! Would you like to meet with me somewhere in the north part of my country for a coffee? I want to tell you a secret.Did you get my PM?

You talking to me? Are you talking to me? ARE YOU TALLKING TO ME?___________________________________________________________

NO, I will never forget that Turkey had to intervene in 1974 to save my life, that of my family and those of my fellow Turkish Cypriots and give me a country I can live in in peace away from the murdering Greeks and Greek Cypriot. Thank you Turkey.

The killing of thousands more innocent Greek Cypriots by the turkish has been well documented.
Stop trying to justify the ethnic cleansing and occupation of Northern Cyprus by a few random riot related deaths of young idiots.

In australia we are having race riots right at this moment. Turks from the Sydney suburb of Auburn are alleged to have fired gun shots into a catholic church and lebanese muslim youths are going on a rampage burning every car in leafy beach side suburbs.

does this entitle Australian muslims to claim their own chunk of Australia and ethnically cleanse all non muslims? thats what your asking Greek Cypriots to accept!